The FICO score, developed by Fair, Isaac Inc. (the pioneer in credit scoring) is a number between 300 and 850 that lenders use to determine your credit risk. A FICO score is a snapshot of your credit risk at a particular point in time. The higher your credit score the more likely you are to be approved for loans and receive favorable rates.

More than 70% of the 100 largest financial institutions use FICO scores to make billions of credit decisions each year, including more than 75 percent of mortgage loan originations.

Equifax and Fair, Isaac demystified credit scores by being the first to provide consumers access to their FICO credit score - the credit score used by the vast majority of lenders to determine a consumer's credit rating.

What is in my Credit Report?
Your credit report includes personal information such as your name, address, date of birth and Social Security Number. It also includes historical data such as previous addresses, current and previous employers, and public records like bankruptcies, liens or judgments. Most importantly, your credit report contains your credit card, mortgage and loan payment history.

Lenders use this information to see if you have missed payments, carry high balances, or are in other ways over extending yourself financially. Payment history is the most important factor in your credit rating - so pay your bills on time - even if it is just the minimum balance due each month.

Lenders evaluate your credit risk based upon information in your credit report so it is a good idea to review your credit report periodically and check for inaccuracies that may have an impact on your credit.